SSARS No. 12--Omnibus Statement on Standards for Accounting and Review Services--2005.

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OFFICIAL RELEASES

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SSARS No. 12--Omnibus Statement on Standards for Accounting and Review Services--2005.

(Amendment to Statement on Standards for Accounting and Review Services No. 1, Compilation and Review of Financial Statements, AICPA, Professional Standards, vol. 2, AR sec. 100.05-.10, 100.25, 100.33, 100.38, 100.49-.58, 100.61-.62, and 100.80; rescindment of Interpretation No. 26, "Communicating Possible Fraud and Illegal Acts to Management and Others," of SSARS No. 1, Compilation and Review of Financial Statements, AICPA, Professional Standards, vol. 2, AR sec. 9100.100-. 103; and amendment to SSARS No. 2, Reporting on Comparative Financial Statements, AICPA, Professional Standards, vol. 2, AR sec. 200.25-.27)

Amendment to Statement on Standards for Accounting and Review Services No. 1, Compilation and Review of Financial Statements (AICPA, Professional Standards, vol. 2, AR sec. 100.05-.10, 100.25, 100.38, and 100.61-.62)--The Accountant's Consideration of Fraud and Illegal Acts in a Compilation or Review Engagement

1. Guidance in Statement on Standards for Accounting and Review Services (SSARS) No. 1, Compilation and Review of Financial Statements (AICPA, Professional Standards, vol. 2, AR sec. 100.05), states that the accountant should, among other things, establish an understanding with the entity that provides that the accountant will inform the appropriate level of management of any fraud or illegal acts that come to his or her attention, unless they are clearly inconsequential. This amendment revises SSARS No. 1 by requiring the accountant to:

a. Establish an understanding with the client, preferably in writing, that the accountant will inform the appropriate level of management of any evidence or information that comes to the accountant's attention during the performance of compilation or review procedures that fraud or an illegal act may have occurred.

b. Report, to the appropriate level of management, any evidence or information that comes to the accounta...

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